Market Updates
One… Two… Freddie (Mac) is Coming for You
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The Inspector General of the Federal Housing Finance Agency (FHFA) recently released a report detailing Freddie Mac’s failure to supervise its loan servicers for their professional and conscientious handling of consumer complaints.
Officially known as “escalated cases”, these varied complaints are accusations against the federal agency's services to borrows like you, generally concerning five separate categories of systematic failure:
- Failure to follow Freddie Mac servicing guidelines
- Allegations of fraudulent servicing practices
- Failure to properly evaluate a borrower for foreclosure alternatives
- Unfair denial of foreclosure alternatives
- Violations pertaining to policy timelines for evaluations and borrower response time
And who bears the penalty for Freddie Mac’s failure? The Inspector General summarized it beautifully in his report…
“Servicers’ failure to resolve quickly escalated cases can prevent foreclosure alternatives from being…
John Grant
is the president of the Distressed Property Coalition, a private advocacy effort formed by the top leaders in the residential real estate industry, and dedicated to private market solutions, smaller government, and protecting taxpayers. DPC exists because investors deserve an easier path to buy and sell houses. Investors deserve to shape policies that govern them, not to be subjected to them. Investors deserve better information on current laws and policies. Investors deserve a safe environment to learn more about the industry. DPC is dedicated to providing these services to the residential real estate community. Their content and track record of success in Washington are unprecedented for this industry.
To received Mr. Grant’s policy briefings and newsletter, please visit www.distressedpropertycoalition.com
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